WALL ST RISES AFTER POWELL SIGNALS RATE CUTS THIS YEAR
The stock market responded positively on Wednesday following remarks from Federal Reserve Chair Jerome Powell indicating the central bank's intention to reduce its benchmark interest rate later this year. Powell, in prepared remarks ahead of his congressional testimony, noted that inflation had "eased substantially" since reaching 40-year highs in 2022. However, he also emphasized the need for "greater confidence" in the continued decline of inflation before considering rate cuts.
During the House panel session, Powell expressed optimism about the possibility of an economic soft landing for the United States, suggesting that a recession appears unlikely. These comments reassured investors and contributed to the rise in Wall Street's main indexes.
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